At a major crypto event in Dubai, Token2049, Rifad Mahasneh, the head of OKX’s Middle East and North Africa division, emphasized the importance of real-world asset (RWA) tokenization. He said that projects should focus on creating real, practical value for everyday use instead of excitement or hype.
“We’re tokenizing things that give real, everyday value. That’s a promising project,” he said. He further added that hype alone cannot sustain long-term growth in the Web3 space.
The United Arab Emirates (UAE) is leading the way in real-world asset (RWA) tokenization, which is the process of turning physical assets, like buildings or land, into digital tokens stored on a blockchain.
On May 1, MultiBank Group signed a massive $3 billion deal with MAG, a UAE real estate company, and Mavryk, a blockchain company, to create the world’s largest RWA tokenization project. They are working together to turn real estate into digital assets that can be bought, sold, or traded easily online.
The Dubai Land Department, which manages real estate in Dubai, started a test project on March 19 to turn properties into digital tokens on a blockchain, working with Dubai’s crypto regulator, VARA. This technique is called real-world asset (RWA) tokenization. Also, on January 9, a $1 billion deal was announced between Mantra, a company focused on tokenization, and Damac Group, a UAE-based company in the process of tokenizing assets.
As per the reports, however, on April 13, Mantra’s token value crashed, losing billions of dollars in worth. These efforts show Dubai is exploring advanced ways to make real estate digital, but there can be risks involved.
In June 2024, the UAE’s Central Bank created a system to regulate stablecoins, which are digital currencies tied to the UAE Dirham.
Also Read: Central Bank of UAE to Roll Out Digital Dirham in 2025
